There’s a lot of talk about foreclosure in the housing market, but thankfully, this is a situation many people can avoid. If you went into forbearance because of COVID-19, you’re eligible for multiple repayment options. The good news is help is available to keep you in your home!
There’s a lot of talk about foreclosure in the housing market, but thankfully, this is a situation many people can avoid. If you went into forbearance because of COVID-19, you’re eligible for multiple repayment options. The good news is help is available to keep you in your home!
Repayment Plan
This splits the amount that’s in forbearance into smaller payments, spread over a period of time, for up to 12 months. This is a good choice if you can afford higher monthly mortgage payments than the current amount, and will bring your loan into good standing relatively quickly. Not sure what you can afford? Use our Mortgage Calculator to find out what those monthly payments may be.
Payment Deferral
If adding any additional cost to your monthly payment is unaffordable, you can delay the repayment of your forbearance amount without changing your loan itself. But, the amount will be due if you sell your property before paying off the loan, reducing the amount of equity you receive for the sale.
Loan Modification
If you were finding the terms of your mortgage difficult before you entered into forbearance, this is a smart time to modify the terms of your loan before entering repayment. In a historic move, the Federal Housing Administration (FHA) announced the availability of a 40-year mortgage, which may help certain borrowers.
Refinance
Even if you’re still in the process of resolving your forbearance plan, you can still refinance your loan. There’s no legal limit to how many times you can refinance during the span of your mortgage, although government-backed loans do require that at least six months has gone by since you last refinanced. So, if it’s been more than six months, this is an attractive option to many homeowners.
Sell Your Home
With home values soaring in the last two years, you’ve most likely built up a significant amount of equity. And, you can sell your home, even if you’re still in forbearance and haven’t restarted payments. Contact us to find out the real, up-to-the-minute value of your home to see how much equity you have and what that can mean for selling your home.
We’ll Help Find What’s Best for You
There’s more financial relief available to homeowners than ever before. This is a great time to consider refinancing, modifying your loan, or even selling for huge gains in equity. Don’t delay managing your mortgage. Contact the Jim Dolanch Team today! We’re passionate about keeping homeowners where they belong: in their homes.